Capital allowances

Are you missing out on tax relief related to a commercial property purchase? You could make substantial tax savings with a review of your capital allowances claims. Rule changes in 2014 could mean you’ll lose out by not acting soon.

If you are an owner of commercial property and subject to UK tax, you are entitled to claim capital allowances on qualifying fixtures in your properties. These include:

lighting and electrical systems;

air conditioning;

heating; and

sanitary ware.

Capital allowances apply whether you own the property as an investment or it is used in your trading business.

Qualifying expenditure can arise on:

the acquisition of a building;

the construction of a new building;

the extension, alteration or refurbishment of an existing building; and

leasehold improvements to a rented property.

Many advisers simply analyse and review accounts at a high level, which highlights only the more obvious fixtures and fittings which are eligible for capital allowances.

At RSM we adopt a more detailed and forensic approach to identifying capital allowances claims for property. By using qualified surveyors we can make a full assessment of the fixtures included in the fabric of a building. We can quickly identify the likelihood and broad potential value of a claim, and can usually agree flexible fee arrangements for our work in generating a capital allowances claim. In many cases, claims can be related back to previous periods in order to generate an immediate tax refund, as well as future savings.

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The UK group of companies and LLPs trading as RSM is a member of the RSM network. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practises in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. Read more